Market Report July 2017
Medium Price up 10%:
Unprecedented demanded in a number of price brackets has produced some incredible results over the past 12 months and has fuelled the increase in the median price by over 10%.
Overall, Ocean Grove property in all segments is performing extremely well in the current market.
Demand is particularly strong for “Old Ocean Grove”. With land in this area rarely becoming available, developers and savvy investors are snapping up these large blocks in this Residential Growth Zone. This leafy area also continues to be in hot demand for family buyers, looking for close proximity to Ocean Grove Primary School and within walking distance to the main street.
Quality new family homes in Kingston & Oakdene Estates within the $550,000 – $750,000 range are also in high demand for families seeking a smart, low maintenance lifestyle and investors looking to capitalize on the strong rental returns. For first home buyers and those seeking potential with a keen eye for renovation, “Old Collendina” still provides the best of both worlds for those not wanting to pay premium price but still be within walking distance to the beach!
Off Market Transactions:
The last 12 months has shown a trend towards agencies selling homes “off market” (10% of Hayden Real Estate’s last 100 sales did not get listed on realestate.com.au.) Having a large accessible database of willing buyers is an important factor for this type of transaction. Engaging our clients through our bi-weekly podcast, email, SMS and social media, means that they can view the property before it hits the market.
First Home Buyers:
The First Home Buyers initiative brought in on 1st July this year means that first home buyers will pay no stamp duty on properties purchased under $600,000. With continuing low interest rates as an added bonus, first home buyers are now more equipped to have a strong presence in the market.
Rental Return Strong:
The rental market is extremely strong at the moment. We are experiencing low vacancy rates and we are leasing properties at the highest advertised price. With land releases continuing in Kingston, Oakdene & Yellow Gums Estate, a lot of our newly signed up tenants are currently in the process of building their family home. Completed homes in these estates are continuing to achieve high rental returns and low vacancy periods, proving that a low maintenance lifestyle is in demand.
The average return for a 2 bedroom unit has increased 15% to now achieve $290-$300 per week. The average weekly rent for Ocean Grove has risen from $347 per week in 2016 up to $360 per week in 2017 showing a strong growth.
With the first home buyers’ concessions, new builds underway, interest rates remaining the same and plenty of buyers wanting to make the move to our seaside town, there is no reason the market shouldn’t continue the way it is for the rest of 2017. We look forward to an even stronger 2018!
The Start of the new financial year is always an interesting time in the Surf Coast market. Traditionally, this along with the colder weather and school holidays sees a slow down in sales and has traditionally been seen as a bad time to sell. Not anymore!
With the market in its strongest position in a very long time, we are still seeing record prices being achieved for vacant land and family homes.
The latest REIV figures show a median house price in Torquay of $715,000 and a median unit price of $532,000. This shows an increase in the median house price of around 10% over the past 12 months and around 15% increase in the median unit price.
The common theme across the industry in Anglesea this July other than the biting cold and rarely seen frosts, has been the shortage of new listings. Currently in Anglesea there are 22 properties listed for sale with Hayden Real Estate holding 10 of these. Through July there were 5 sales across Anglesea ranging from $475,000 to $1,050,000.
The median price for Anglesea for July sits at $670,000 with still large demand for property, with visits per property throughrealestate.com.au listed at 1077 per property. Well above the state average of 733. In comparison Aireys Inlet’s median price sits at $725,000 with 878 visits per property, Fairhaven’s median price is $862,500 with 595 visits per property and finally Lorne with a median price of $1,050,000 with 312 visits per property so there are still plenty of buyers out there looking for properties.
As we head into Spring there is a buzz in the air with new listings expected as we hit the warmer months and buyers look to have their first Christmas on the Surf Coast in their new property.
First home buyers:
With the introduction of further relief for first home buyers on the 1st July this year, we have seen an influx of first home buyers back in the market. Homes under $650,000 have been highly sought after.
Demand for all types of property has been extremely strong, where as we have seen lower levels of supply with fewer homes hitting the market. We see the highest level of demand for vacant land and four bedroom family homes in the $650,000 – $850,000 range.
Land prices have seen a dramatic increases in the past 12 months with subdivisions being sold out within a day. Developers are now forced to sell ‘off the Plan’ up to 18 months before titles will be delivered to try to keep up with the demand for land in Torquay. This demand is fuelled by both local families, builders and out of town investors looking for a piece of the coast. We are certainly looking forward to new land releases in Spring.
With interest rates at historically low levels, first home buyer grants and high demand, we see the continuation of a strong market for the remainder of 2017 and into 2018. The market will also be fuelled by those looking to escape escalating Melbourne prices and enjoy the beauty the Surf Coast has to offer.